There’s a lot of inaccurate information out there about the differences between an as-is home offer and a traditional real estate selling process. Since we often buy homes as-is, we thought we’d share how our offers compare to traditional retail offers to give you a better idea of the differences between the two.
In case you’re not familiar with the term as-is sale, it’s good to know it’s a sale where you and the buyer agree on a price for your home exactly as is. No repairs, no cleaning, and no hassle. An as-is sale is very different from a traditional sale, so it’s helpful to see the differences. Here’s a point-by-point comparison of as-is and traditional home sale offers, so you’ll know which one is best for you when you’re ready to sell your home.
Real Estate Process
In a traditional sale, the process is a little more complicated and expensive. The fees are paying title insurance, transfer taxes to your state or county, and the title closing fee. You will also have to pay the title company to do the work. In addition to:
With this method, the sale process can take anywhere from 60 to 90 days. You are responsible for all property taxes and insurance fees that accrue.
These are usually the ones who take a large percentage of the sale. Your real estate agent will take a percentage of the sale price as a commission between 10% to 15%, translated into thousands of dollars at the end of the process.
Once you work with a real estate investment firm to sell your home for cash, they will wipe out any additional fees associated with the process. Since you will close in as little as 7 days, there are no closing costs. Finally, you don’t need a real estate agent to sell your home as-is, so you pocket every penny of your cash offer.
In a traditional sale, any offer you receive that is financed by a loan must have an inspection. Depending on what the inspector finds, you will be required to make improvements, which translates to thousands of dollars, depending on the home’s condition. You can make the repairs yourself, or the estimated cost can be deducted from the original offer.
In an as-is sale, your house is purchased as-is. As a real estate investor will pay cash, you don’t need to inspect with no bank assistance. This means you won’t have to make any repairs. Again, all the money from an “as is” offer goes directly into your pocket.
If the lender’s valuation is lower than what the homebuyers are offering to pay for their home, they will ask for a concession or a price reduction. Without a price reduction, they will not get a loan on their home and have to back out of the sale.
In an as-is sale, no bank is participating. The buyer has the cash on hand to buy your home and doesn’t need a mortgage. Therefore, the home will not be valued, and you will simply be paid the agreed price.
Real Estate Process
In a traditional sale, selling your home can take 60 to 90 days. Due to the sale details, the buyer must get a loan to cover the cost of the house and, above all, find the ideal buyer for your property.
House Buying Company
It works at your convenience, and you can choose the closing date. Again, since the as-is sale is a direct transaction between you and the buyer, with no middlemen or unnecessary paperwork, it can be done fast and on your schedule.
Selling your house to a home cash buyer will relieve some of the stress during this time and the speed that only a cash buyer can provide. Sell your home in Portland with our help and experience the wide benefits we bring to your selling process. I Will Buy House Portland will work fast and with transparency. Contact us today!